GeoPark Limited is acquiring upstream oil and gas assets in Colombia from Repsol for approximately $530 million. The deal comprises a 100% stake in Repsol Colombia O&G Limited, which includes a 45% interest in the CPO-9 Block and a 25% interest in SierraCol Energy Arauca LLC. This acquisition is part of GeoPark’s strategy to enhance its production capabilities and support long-term growth in Latin America.
GeoPark Limited, a key player in Latin America’s oil and gas sector, has announced its acquisition of upstream oil and gas assets in Colombia from Repsol for an estimated $530 million. The transaction involves the purchase of 100% of Repsol Colombia O&G Limited, which holds a 45% non-operated working interest in the lucrative CPO-9 block within the Llanos Basin, a region known for its prolific oil production. With an additional acquisition of a 25% stake in SierraCol Energy Arauca LLC, GeoPark aims to enhance its operational capabilities and leverage its existing experience in the area.
The purchase will significantly bolster GeoPark’s portfolio, adding approximately 16,000 barrels of oil equivalent per day, net to Repsol’s previous operations. The funding for this substantial acquisition will be sourced from a mix of cash reserves and debt, including a non-recourse amortizing debt facility amounting to $345 million. GeoPark indicated that the acquisition aligns with its strategic growth objectives, designed to secure competitively advantageous assets and enhance the sustainability of its operations across Latin America.
GeoPark’s planned acquisition highlights its intent to promote an immediate and sustained production increase alongside a strong cash flow, all while maintaining low capital investment requirements. The firm commented on the addition of these assets as both a complement to its recent foray into the Vaca Muerta play in Argentina and as a strategic move towards country and risk diversification, expected to benefit the company well into the next decade. The transaction is contingent upon customary regulatory approvals, including the successful negotiation of preemptive rights with Repsol’s partners, further emphasizing the careful considerations involved in this acquisition initiative.
As a part of its ongoing projects, GeoPark has recently initiated production in the Confluencia Norte Block in Argentina, boasting a 50% non-operated interest. This development follows the successful drilling of a vertical pilot well and three horizontal wells, which showcased impressive production rates and established the block’s geological potential. The strategic expansion and operational synergies continue to define GeoPark’s pursuits in the region as it looks to capitalize on proven oil reserves.
GeoPark Limited, headquartered in Latin America, has distinguished itself as a formidable enterprise in the oil and gas industry. The firm targets acquiring assets that not only contribute to immediate production but also ensure long-term profitability. The Llanos Basin has emerged as a focal point for production due to its favorable geological conditions. The acquisition from Repsol represents GeoPark’s strategy to enhance its geographical and asset portfolio, thereby ensuring risk diversification and reinforcing its operational stance in the region. The ongoing activities in Argentina further augment this strategy, facilitating a broader footprint in high-potential plays like Vaca Muerta.
The acquisition of Colombia’s oil and gas assets from Repsol marks a significant milestone in GeoPark’s growth strategy, enhancing its portfolio with high-quality assets in a productive region. With a focus on value and sustainability, the firm is strategically positioned for robust production and financial outcomes. The acquisition aligns with the company’s objectives while expanding its operational presence in Latin America, supported by recent developments in Argentina. Overall, this transaction underscores GeoPark’s commitment to establishing a dependable and profitable oil and gas business.
Original Source: www.rigzone.com
